Last quarter production reports just came in. Record sales of ore. 49m Tones. A good price of $87 US average.
Record quarter delivers best ever half year operating performance
Fortescue Executive Chairman, Dr Andrew Forrest AO, said, “The Fortescue team delivered our highest ever December quarterly shipments of 49.4 million tonnes, our best ever half year, grew the mineral and green energy business globally, strengthened our balance sheet, kept costs low, all while maintaining our excellent safety performance.
“We are now nearing the 200 million tonne annualised rate in our iron ore business even before we commission Iron Bridge. Our Company has never performed better on the mining, exploration, green hydrogen and green energy development front, while leading the world as the first heavy industry company to achieve real zero with a fully costed plan. Fortescue will step beyond fossil fuels this decade, saving shareholders approximately US$1 billion a year and setting the global stage for all environmentally responsible companies to follow.
“Demand for Fortescue’s suite of iron ore products remains strong and our entry into the higher-grade segment of the market has been well received, with significant interest in the Iron Bridge magnetite concentrate. This is further supported by the Belinga Project in Gabon, with engagement rapidly advancing and very positive geological assessments from ground mineral surveys. The initial drilling program is expected to commence in March 2023. We also continue to develop our rare earths division as announced at the 2022 Annual General Meeting
Summary
• Total Recordable Injury Frequency Rate (TRIFR) of 1.8 at 31 December 2022, consistent with December 2021.
• Iron ore shipments of 49.4 million tonnes (mt) in Q2 FY23 contributed to shipments of 96.9mt for H1 FY23, 4% higher than H1 FY22 and a record for a half year.
• Average revenue of US$87/dry metric tonne (dmt), realising 88% of the average Platts 62% CFR Index for the quarter.
• C1 cost of US$17.17/wet metric tonne (wmt), 3% lower than the previous quarter.
• Cash increased to US$4.0 billion (net debt of US$2.1 billion) at 31 December 2022, after capital expenditure of US$728 million in the quarter.
• Commencement of civil works on the installation of the solar farm as part of the Pilbara Energy Connect program of works.
• Fortescue Future Industries (FFI) established a framework agreement with the Government of Kenya to develop green ammonia and green fertiliser facilities.
• Announced the appointment of experienced executive Fiona Hick as Chief Executive Officer of Fortescue Metals.
• Guidance for FY23 shipments is maintained at 187 - 192mt, inclusive of Iron Bridge shipments of less than 1mt (previously 1mt).
• Guidance for FY23 C1 cost and capital expenditure remain unchanged.